European shares rise amid M&A talk

Ilona-Billington
June 4, 2018 2 min read

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European shares are higher around midday Monday, as investor sentiment gains amid mergers and acquisitions talk, while political uncertainty takes a backseat. While tensions in Italy, Spain and the US trade policies remain, they’re not the main focus, so far Monday.

By 1225 BST, the EUROSTOXX 600 was 0.40% higher, while the EUROSTOXX 50 gained 0.50%. The regional bourses were a little mixed. The German DAX edged down 0.05%, however, the French CAC rose 0.27% and the Spanish IBEX was 1.86% in positive territory.

Deals talk dominates investor sentiment

A number of M&A discussions are hot topics in the European markets Monday. Among them are an FT report that UniCredit and Société Générale are in talks to merge their operations and potentially become Europe’s biggest bank.

An increased offer from CYBG to buy Virgin Money, meanwhile, has also helped to boost the banking sector, with both stocks moving higher in morning trade.

Outside the finance arena, AccorHotels has confirmed it has resumed discussions with Air France-KLM to work more closely together. One option could include AccorHotels buying some or all of the French Government’s stake in the airline.

Accor shares lost 6.07% to hit €44.71, while Air France-KLM shares moved up 6.99% to €7.47.

Other stock movers

Other European stock movers of note were also apparent, Monday.

Novartis shares were trading 0.24% higher at €74.88 after it announced positive results from its third Phase III trial of its breast cancer drug, Kisquali.

Deutsche Bank shares are also trading higher Monday, continuing the gains made towards the end of last week amid a tough time for the German bank. Deutsche Bank shares were 2.47% higher at €9.64.

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